Sub to an owned owner financed property
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
Quote from @Sebastian Butler:I'm not really sure what you are meaning. Can it explain it step by step?
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
Quote from @Ken M.:
Quote from @Sebastian Butler:I'm not really sure what you are meaning. Can it explain it step by step?
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
So for example you purchase a property on favorable owner financing terms. Some time period later you want to sell that property to another investor while still under terms with the original seller. Can those terms be transferred to the new investor?
Quote from @Sebastian Butler:
Quote from @Ken M.:
Quote from @Sebastian Butler:I'm not really sure what you are meaning. Can it explain it step by step?
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
So for example you purchase a property on favorable owner financing terms. Some time period later you want to sell that property to another investor while still under terms with the original seller. Can those terms be transferred to the new investor?
The terms can be transferred, but you want to be very careful who you pass it on to for a lot of legal reasons.
Quote from @Ken M.:What reasons are those? Would I assume liability for non payment?
Quote from @Sebastian Butler:
Quote from @Ken M.:
Quote from @Sebastian Butler:I'm not really sure what you are meaning. Can it explain it step by step?
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
So for example you purchase a property on favorable owner financing terms. Some time period later you want to sell that property to another investor while still under terms with the original seller. Can those terms be transferred to the new investor?
The terms can be transferred, but you want to be very careful who you pass it on to for a lot of legal reasons.
Quote from @Sebastian Butler:That for sure. DOS, waste, insurance lapse, unpaid property taxes, liens, lawsuits, bankruptcy to name a few off he top of my head. Training is available.
Quote from @Ken M.:What reasons are those? Would I assume liability for non payment?
Quote from @Sebastian Butler:
Quote from @Ken M.:
Quote from @Sebastian Butler:I'm not really sure what you are meaning. Can it explain it step by step?
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
So for example you purchase a property on favorable owner financing terms. Some time period later you want to sell that property to another investor while still under terms with the original seller. Can those terms be transferred to the new investor?
The terms can be transferred, but you want to be very careful who you pass it on to for a lot of legal reasons.
Quote from @Account Closed: @Clay Watson:Very, very bad information. You two deserve each other. ;-)
It's a smart way to get around the usual selling to an investor or end buyer. Some folks do this to start wholesaling owner financed deals.
Just make sure you're clear on the legalities and terms with the current owner. It's doable, but you'll want to dot your i's and cross your t's.
Quote from @Account Closed:
Sure, you can sub to an existing property you own that is currently owner financed. It's a smart move to explore this option for wholesaling owner financed deals, as it can help you work around the challenges of selling to an investor or end buyer.Many investors do this, and it's definitely possible. Just make sure to review your existing financing agreement and possibly consult with a real estate attorney to ensure everything is in order.
Please don't wholesale subject to deals. If you don't understand the reasons why, you shouldn't be near a subject to deal.
Quote from @Sebastian Butler:
Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.
You could, but you promised the seller to make payments on the note, so it's a bad idea.
Stay in the deal and continue as the party who pays the seller using a wrap.